The liquidity risks associated with European bond funds have reached an all-time high, according to ratings agency Fitch, which is questioning the suitability of 90% of offerings on the market.
According to the Financial Times, Fitch said fixed income UCITS funds are most at risk and suggested they may not be able to continue offering investors instant access. The agency said the frequent volatility combined with redemption spikes "raise questions" about the suitability of some 90% of UCITS bond funds. At the end of last year US investment firm Third Avenue was forced to shut its $800m high yield bond fund to meet redemption requests, sparking fears of a wider "meltdown" in this area of the fixed income market. Meanwhile, markets are expected to continue to be volatile ov...
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